The Public Service Loan Forgiveness (PSLF) program was established in 2007 to help borrowers pay off their student loan debt easier and faster. Under the federal program, eligible borrowers can have their loans discharged after 10 years if they meet eligibility requirements.
On July 1, 2026, new Public Service Loan Forgiveness (PSLF) rules will change which employers qualify. An employer is eligible for PSLF when Employment Certification Forms (ECFs) are submitted and verified.
Under the new rules, the Department of Education will have the authority to disqualify certain organizations from PSLF eligibility. They have stated they will “ensure the definition of ‘public service’ excludes organizations that engage in activities that have a substantial illegal purpose.” Learn more about Qualifying Employment.
Public Service Loan Forgiveness Requirements
If you are employed by the state or federal government or a not-for-profit organization, you may be eligible for the PSLF Program. The PSLF Program forgives the remaining balance on your Direct Loans:
- After 120 qualifying monthly payments have been paid under an accepted repayment plan.
- While working full-time for an eligible employer.
What Jobs and Careers Qualify for PSLF?
Public service jobs can encompass a variety of employers and roles, not just careers in government. The Department of Education lists public service areas as:
- Military and civilian service to the military
- Emergency management
- Public safety
- Law enforcement
- Public interest law
- Early childhood education
- Public service for individuals with disabilities
- Public health
- Public education
- Public library services
- School library services
- Other school-based services, like health or nursing services, social work services, or parent counseling and training
- Public service for the elderly
How to Apply for Public Service Loan Forgiveness (PSLF): Step-by-Step
Those hoping to qualify for student loan forgiveness must follow these steps:
Step 1: Create FSA ID at StudentAid.Gov
It’s recommended that borrowers register for an FSA ID at StudentAid.gov/create-account or update your contact information at StudentAid.gov/settings.
Step 2: Confirm Employer Eligibility
The US Department of Education has an employment certification form and instructions. Determine if your employer qualifies for Public Service Loan Forgiveness by using the Employer Eligibility Tool.
Step 3: Submit Employer Certification Form (ECF) Annually
It is best to submit the form annually or whenever the borrower changes employers to ensure that the qualifying service is properly recorded.
Upon submission, the US Department of Education’s servicer will inform the borrower whether the employment reported on the form satisfies the requirements for public service loan forgiveness. Borrowers will also be able to track their progress toward obtaining public service loan forgiveness.
Step 4: Apply for Forgiveness After 120 Payments
After the borrower has fulfilled the requirements for public service loan forgiveness (i.e., made 120 qualifying payments while working full-time in a qualifying public service job), the borrower will need to file a PSLF application to obtain the loan forgiveness.
Federal Direct Consolidation Loan and PSLF
If you have not yet consolidated, you can seek a federal direct consolidation loan in order to obtain an income contingent repayment plan. Because of the upcoming changes under the One Big Beautiful Bill Act (OBBBA), loans must be consolidated before April 1, 2026. Learn more about Loan Consolidation.
For borrowers consolidating after July 1, 2026, which is when the OBBBA will officially go into effect, borrowers can consolidate their loans but only under the Repayment Assistant Plan (RAP). This repayment plan will replace other income driven-repayment plans.
The RAP will cap payments at 10% of Adjusted Gross Income (AGI), but they could be as little as 1% of AGI.
Frequently Asked Questions about PSLF
Naturally, borrowers have many questions about student loan forgiveness and how to qualify. Below are a few of the most commonly asked questions:
Does part-time work qualify for PSLF?
Part-time work does not qualify for student loan forgiveness. Borrowers must be working full-time for a qualifying employer to receive loan forgiveness.
Can private student loans be forgiven under PSLF?
Unfortunately, private student loans cannot be forgiven. Private loans are rarely forgiven. Only federal loans can be forgiven under the PSLF program.
What happens if my employer loses PSLF eligibility?
If an employer loses their PSLF status, the prior payments made toward loan forgiveness will still be credited. However, the borrower will need to find employment with another PSLF eligible employer to continue on their journey toward student loan forgiveness.
Is PSLF taxable income?
The IRS states that student loan debt that is forgiven is not considered taxable income. Borrowers will not be taxed by the federal government, but the state may tax you.
Read about a real-life, successful journey to loan forgiveness from Fastweb’s editor, Shawna Newman.
